The dire state of the global PC market has been exposed after IDC said that PC sales during the first quarter were the lowest it had ever seen, since it started keeping track.
And the research firm pointed the finger of blame at Microsoft’s Windows 8.
The global PC market, during the first quarter of this year, had its “worst-ever quarter” since IDC began tracking quarterly PC sales in 1994, the research firm announced 10 April.
While a middling economic climate could take some heat for the results, as could consumer interests shifting to smartphones and tablets, IDC analysts more than anything blamed Microsoft and its Windows 8 operating system. While the market had fingers crossed that the long-awaited new OS would usher in upgrades and device refreshes, it actually had the opposite effect, said IDC.
O’Donnell said that while some consumers appreciate the new features and touch capabilities in Windows 8, “the radical changes to the [user interface], removal of the familiar Start button and the costs associated with touch PCs have made PCs a less attractive alternative to dedicated tablets and other competitive devices.”
Jay Chou, a senior research analyst with IDC, added that users find Windows 8 to offer “a compromised experience that doesn’t excel, either as a new mobile interface or in a classic desktop interface.”
The result, Chou added, “is that many consumers are worried about upgrading to Windows 8, to say nothing of business users who are still just getting into Windows 7.”
IDC Research Director David Daoud said that while he was unsurprised by the fall in shipments, he found the magnitude of their drop “surprising and worrisome.”
“The industry is going through a critical crossroads, and strategic choices will have to be made as to how to compete appropriately with the proliferation of alternative devices,” said Daoud.
He added that vendors will need to “revisit” their organisational structures and approaches to the supply chain, distribution and product portfolios.
The global PC market shipped 76.3 million units during the quarter, which was down 14 percent from a year ago.
Hewlett-Packard, falling 24 percent year-on-year, nonetheless led the worldwide market, with a 15.7 percent share. Lenovo, holding steady year-on-year, was hot on HP’s heels, with a 15.3 percent share.
Dell, Acer and Asus each saw sales fall year-on-year, but maintained 11.8, 8.1 and 5.7 percent market shares, respectively.
In the United States, fifth-ranking Lenovo was again the only vendor to not experience negative annual growth. It managed to grow 13 percent, shipping 1.274 million units, for a 9 percent share, essentially tying it with fourth-place Toshiba, which shipped 1.279 million units for its own 9 percent share of the market.
HP finished first in the United States, with a 25 percent share, despite a negative 23 percent growth rate, followed by Dell, with a 22 percent share, and Apple, with a 10 percent share of the market.
IDC called the US market “dismal,” with its shipments at their lowest level since 2006.
While globally, Lenovo’s shipments outpaced the market, its shipments in Asia declined, which accounted for its flat growth rate. In Asia, IDC again pointed to Windows 8. Its lukewarm reception there “hampered new shipments,” said the report.
Microsoft, said IDC’s O’Donnell, “is going to have to make some very tough decisions moving forward if they want to help reinvigorate the PC market.”
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Originally published on eWeek.
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Consumer PC sales will always fall due to saturation.
Most people already own a PC. Many people are buying tablets for the first time. The average consumer who uses the PC for low powered duties such as web browsing and typing the odd document sees no real benefit in replacing a six year old desktop PC. Result: PC sales continue to fall.
As for desktop PCs: If desktop PC companies want to see a reduction in the PC sales decline, then they need to do the following:
1) Microsoft must not turn its back on the enterprise PC market that grew Microsoft. Many aspects of Windows 8 are frustrating, divisive, unintuitive and straight up make no sense for a desktop office PC. Microsoft’s narrow minded “touch screen is perfect for everything” mentality will help to kill the 50% or so of the desktop PC market which is currently the most healthiest: Enterprise.
2) The lack of properly (and I mean, properly) advertised media center PCs sold with an infra red remote control is a largely missed opportunity. I spent the past five years working in various stores of a UK national consumer electronic company. One of the ten most popular customer requests is: “where can I find the cable that connects the laptop to my TV”. The point being that while Microsoft have put Windows Media Center on death watch, there are thousands of customers looking to connect their laptops to the TV. Mostly for playing media on their TV’s. The vast majority of these customers are unaware that the PC can also be controlled via a “discontinued” Microsoft infra red remote control from the comfort of their couch. The second biggest problem with desktop PCs for the home - after the fact that most people see no reason to replace theirs - is that consumers have lost interest with the idea of having a desk, desk chair, dedicated monitor and to then sit themselves down in an unsociable dark corner of their house just to surf the net or type a quick email. This is where laptops and tablets come in and where traditional desktops will never be able to compete. People can relax on their sofas with their tablets. Media is best enjoyed on the big screen. Whether it involves showing guests their family photos, enjoying Youtube with the family, or watching a downloaded or DVD movie. However, if Microsoft continue to overlook the importance of a proper Windows Media Center front with its optimized ten foot interface design and Microsoft limit themselves to the idea that the future is ALL touch screen handheld devices, then they miss the thousands of customers who want a media center experience on the big screen which is sitting ten foot away. If you look at the success of laptops and tablets and the way consumers want to relax in their homes, “desktop” home PCs are being marketed in a wrong way. You could say they are out of date and need to be reinvented as Media PCs for connection to the living room TV.
Users that I have worked with do not like the Windows 8 interface. In business people who type do not like the touch screens because it slows down their typing. Keep in mind many people have spent years learning Windows 3.1/95/98/NT/2000/ 7. The Desktop should be the default for windows 8 and the touch screen optional.